A conversion feature is an option that is included as part of a common stock issue that allows its holder to change the stock into a stated number of shares of preferred stock.

Question

Quizplus · Accepted Answer

A conversion feature typically allows holders of convertible securities, like preferred stock or convertible bonds, to convert their holdings into a specified number of shares of common stock, not the other way around.

A Conversion Feature Is an Option That Is Included as Part